RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 68,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell RootSystems the switch for $15.50 per unit. If RootSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. (Click the icon to view the outsourcing decision analysis.) RootSystems needs 82,000 optical switches next year (assume same relevant range). By outsourcing them, RootSystems can use its idle facilities to manufacture another product that will contribute $219,000 to operating income, but none of the fixed costs will be avoidable. Should RootSystems make or buy the switches? Show your analysis. Data table RootSystems Incremental Analysis for Outsourcing Decision Make Buy Unit Unit Difference - Variable cost per unit: Direct materials 8.00 $ 0.00 $ 8.00 Direct labor 1.50 0.00 1.50 Variable overhead 3.00 0.00 3.00 0.00 15.50 Purchase price from outsider (15.50) $ 12.50 $ 15.50 $ (3.00) Variable cost per unit Print Done Data table A B Direct materials $ 544,000 Direct labor 102,000 Variable MOH 204,000 Fixed MOH 476,000 Total manufacturing cost for 68,000 units 1,326,000 Print Done - X RootSystems manufactures an optical switch that it uses in its final product. RootSystems incurred the following manufacturing costs when it produced 68,000 units last year: (Click the icon to view the manufacturing costs.) Another company has offered to sell RootSystems the switch for $15.50 per unit. If RootSystems buys the switch from the outside supplier, none of the fixed costs are avoidable. The company prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying (outsourcing) the switches. (Click the icon to view the outsourcing decision analysis.) RootSystems needs 82,000 optical switches next year (assume same relevant range). By outsourcing them, RootSystems can use its idle facilities to manufacture another product that will contribute $219,000 to operating income, but none of the fixed costs will be avoidable. Should RootSystems make or buy the switches? Show your analysis. Complete the Best Use of Facilities Analysis. (Enter a "0" for any zero amounts.) RootSystems Best Use of Facilities Analysis Expected profit contribution from the other product Expected sales price of the other product Fixed unit cost of obtaining the optical switches Variable unit cost of obtaining the optical switches Buy and Use Facilities for Other Make Product